Why are health insurance premiums rising so much?

We know that many of our clients are feeling the strain of rising health insurance costs. As financial advisers, we see firsthand how valuable this cover is, we see the number of claims—providing access to timely medical treatment and helping to avoid the long wait times in the public system. However, as we age, premiums naturally increase, and with the current pressures on the healthcare industry, those costs are rising even more.

The Reality: Premiums are rising because claims are rising, and so is their value

In recent months, health insurance claims have reached record highs, with insurers paying out millions for vital procedures. Some of the most expensive claims in with nib in December 2024 included:

• Cardiac surgery: $103,000 (client aged 72)
• Cancer treatment: $102,000 (client aged 77)
• Cardiac surgery: $93,000 (client aged 80)
• Cardiac surgery: $88,000 (client aged 76)
• Spinal surgery: $87,000 (client aged 48)

These are not just numbers—they represent real people who avoided long public waitlists and received the care they needed, when they needed it.

Fact – the public system is stretched

We’ve all experienced delays getting specialist referrals or treatment. Medical inflation is surging, and hospital resources are stretched beyond capacity. As a result, more people are turning to private health insurance, with an additional 250,000 New Zealanders taking out policies last year alone.

Protecting your financial future

The reality is, a single major medical event could be financially devastating. Health insurance ensures you can access treatment without worrying about the cost. The demand for private care is growing because it works—and we’re here to support you through every step, from choosing the right cover to assisting with claims.

Now is not the time to drop cover

We understand the financial pressures many are facing, but now more than ever, maintaining health insurance is crucial. The data is clear:

• Medical costs in New Zealand have risen faster than almost anywhere in the world.
• Private health insurance is increasingly bridging the gap where public healthcare falls short.

We’re here to help

As your advisers, we work alongside you, not just to set up your cover but to guide you through the claims process when you need it most. If you have questions about your policy, affordability, or options to adjust coverage without losing essential benefits, let’s talk.

Your health matters. Your financial security matters. And we’re here to make sure you’re protected.